Credit Cards: Which one is the right one for you?
There are so many different types of credit cards out there that it can sometimes be a bit complicated to figure out which one is the best fit for you. Choosing the right card can save you thousands of ringgit, so why not take the time to do it properly?
Here at GoBear Malaysia, we’ve come up with some different types of credit card facilities and features that would fit your particular spending patterns. So, if you…
… Are a disciplined spender who always pays off the monthly statement in full
Go for a credit card with no annual fees or fee waivers. Many banks will waive the annual fees altogether if you applied for it, or if you used the card a certain number of times a year (usually 12, or once a month). Non-bank card issuers often don’t charge such fees at all. This can save you up to RM600 or more every year.
Co-branded or store-issued credit cards can often save you quite a lot of money over time
… Spend a lot of money on a particular supermarket or retailer
Apply for that supermarket’s or retailer’s store-issued or co-branded credit card. The eligibility requirements are often not very high (comparable with other credit cards from the same banks), and on top of getting greater rebates and cashback from that particular store, you may also get to automatically be a member of the store’s membership rewards programme.
Yes, some banks in Malaysia do issue UnionPay cards
… Travel a lot in mainland China, Taiwan, Macau or Hong Kong
Get a China UnionPay (UnionPay or CUP)-linked credit card. Most credit cards are still linked to the Visa, MasterCard or American Express international networks; however, in mainland China, UnionPay is the preferred interbank network. In fact, UnionPay is the third largest payment network in the world behind Visa and MasterCard, and is gaining acceptance throughout the rest of Asia (including Malaysia). If you opened a China account with PayPal, it will also accept UnionPay cards.
… Spend a lot on the credit card but have no interest in rewards programmes
A credit card that offers cashback on all retail purchases may be the best bet for you. While such cards usually impose a limit on the amount of cashback you can earn during a month, it’s still better than accumulating reward points or air miles that you don’t really intend to use within their expiry period.
What if you fall into more than one category? Provided you are careful about how you spend on the credit cards, you can always opt to have more than one. This also provides you the flexibility of deciding how much you want to spend on a particular credit card (and hence lower your credit limit appropriately).
But choosing the right credit card can sometimes be a challenge, because you have to weigh several factors across multiple similar such cards. Let GoBear Malaysia take much of the guesswork out of your hands. Simply use our credit card comparison service and see how different credit cards stack up against each other in a matter of seconds.